Pakistan: Agri-sector's credit limit enhanced by Rs450 billion

Federal Minister for Finance and Revenue Senator Muhammad Ishaq Dar in Islamabad on Saturday said that special focus was given to agriculture sector in Federal Budget 2023-24 and credit limits were enhanced by Rs 450 billion from Rs1,800 billion to Rs 2,250 billion.

Addressing the post budget press conference, he said that State Bank of Pakistan would monitor the credit disbursement for ensuring the credit availability and access of the growers to the lending institutions to take the quick existing dividends in the sector.

The minister further said that Rs30 billion was earmarked for the solarisation of electric agriculture tube wells, besides removing all the taxes from imported seeds that would enable to harvest higher per-acre output of all major and minor crops.

The government has also announced special tax and duty relief measures on the import of agriculture machinery including combine harvesters, dryers, rice planter and seeders, he said adding that concessional loans for agro-based small and medium enterprises to encourage agriculture value addition in the country.

He said that tax exemptions would also be provided for setting up new agro-based industrial units with turn of Rs800 million, adding Rs10 billion to be provided under Prime Minister Youth Business and Agriculture Loan Scheme to young people for starting their own business.

In order to ensure the availability of urea fertilizers, the government was providing gas supply to local fertilizer manufacturing units and it would be continued till end August to ensure production of cost effective fertilizer to facilitate the local growers.

He said that government had also set a side an amount of Rs 6 billion for subsidy in urea fertilizer, adding that in case of rising demand it would be imported and provided to growers on controlled rates.

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